NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6745AREVISED 6/12/25
SPONSOR: Woerner TITLE OF BILL:
An act to amend the racing, pari-mutuel wagering and breeding law, in
relation to prohibiting online sweepstakes games and revenue from ille-
gal markets
PURPOSE:
To prohibit certain persons from operating, conducting, or promoting
certain online sweepstakes games or supporting the operation, conduct,
or promotion of such games. The bill also grants authority to the New
York State Gaming Commission and the Attorney General to enforce penal-
ties against violators.
SUMMARY OF PROVISIONS:
Section 1 - Provides the legislative purpose of the bill.
Section 2 - Amends the racing, pari-mutuel wagering and breeding law by
adding a new section 912, which:
*Defines "online sweepstakes game," specifies the types of games covered
under this prohibition, and requires the Commission to determine what
constitutes a dual-currency system.
*Defines "table games." *Defines "lottery games."
*Prohibits the operation, conduct, or promotion of online sweepstakes
games by any applicant, licensed entity, gaming employee, or other
related individuals or entities.
*Prohibits financial institutions, payment processors, geolocation
providers, gaming content suppliers, platform providers, or media affil-
iates from supporting such games.
*Establishes penalties, including fines ranging from $10,000 to $100,000
per violation and potential loss of a gaming license. All fines result-
ing from violations of this section will be collected by the Commission
and deposited into the commercial gaming revenue fund to be distributed
for problem gambling education and treatment purposes.
*Grants enforcement authority to the State Gaming Commission, State
Police, or Attorney General's office.
Section 3 - Provides the effective date.
JUSTIFICATION:
Platforms are using online real money "sweepstakes casinos" to try to
avoid New York's gambling laws. This legislation clarifies that online
real money "sweepstakes casinos" constitutes illegal gambling and estab-
lishes penalties for operating or facilitating unregulated online gambl-
ing.
Online real money "sweepstakes casinos" have recently become widely
available in New York over the internet on mobile devices and personal
computers, including to minors. These products evade consumer
protection, responsible gaming, and anti-money laundering requirements
to which gambling in New York is otherwise subject. These products and
operations are untaxed and unregulated. They present unfair competition
to the state's legal, highly regulated and economically important casi-
nos.
The legislation will provide a powerful deterrent to offshore and domes-
tic illegal online gaming operators from entering the State and/or to
withdraw from the state and will provide robust tools to the Gaming
Commission and the Attorney's General Office to enforce the law.
LEGISLATIVE HISTORY:
New Bill
FISCAL IMPLICATIONS:
There is no fiscal impact on the State or local governments.
EFFECTIVE DATE:
This act shall take effect immediately.
